Retreat is not an option: PM

Prime Minister Julia Gillard is determined to deliver the carbon pricing scheme in the face of a “virulent fear campaign", saying it will give Australia a stronger economy.

“In the midst of uncertain global economic conditions we should not lose sight of this country’s strong economic backbone," Ms Gillard told a business breakfast in Sydney.

“The cost of inaction is higher than the cost of action both immediately and in the longer term, that is true of climate change as it is true of economic reform more generally. Retreat is not an option."

The latest Nielsen poll shows Labor’s primary vote has plunged to 26 per cent, the lowest in the poll’s history.

“Long after the opinion polls have been forgotten, I want to be able to look in the eyes of the next generation and say we did the right thing by you," she said.

“This is a big economic reform in the Hawke and Keating tradition of facing up to the hard things we have to do.

“For me this is about continuing the explanation that helps people understand a big reform ... I am absolutely confident the facts are on our side."

She said she was confident the package would be passed by federal parliament and start on July 1 next year.

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“I will be happy to fight the 2013 election on who has a vision for the future."

She said some of the “fear campaigns" about the 6 per cent rise in petrol prices or the demise of steel making and coal were being “shown to be false claims".

“All we can do is be out there talking about the facts. We know other countries are acting, other counties have an emissions trading scheme."

Ms Gillard also said state premiers were starting to blame on the carbon price things that were “defective in their own administration".

She said electricity prices in NSW increased by 18 per cent over the past 12 months, which was a bigger impact than a carbon price would have.

The Prime Minister said the federal government indexed its funding to schools to cover such rises “but what’s [NSW Premier] Barry O’Farrell done about the 18 per cent increase in electricity that is nothing to do with [a] carbon price. This is another attempt to pass off state responsibilities as something to do with carbon pricing."

She reiterated that the scheme was a tax on polluters and not a tax on individuals, and that the reform would change business decisions and would lead to cleaner technology.

Opposition Leader Tony Abbott continued his campaign against the carbon tax on Monday, telling an audience in Southport, Queensland, that the scheme was a “dud".

“The problem with this carbon tax was that it’s not fair and it won’t work."

“All of the trouble and the effort and the upheaval is supposed to reduce our emissions and the crazy thing about what the government has got in mind – they’re going to make business pay $9 billion a year, give half of it back to business, half to political groups they favour, this vast money-go-round and for what," he told a senior’s forum.

Mr Abbott claimed that emissions in 2020 would be higher than they were now.

“The Australian people are not mugs and they know this carbon tax is a dud."

Earlier on Monday, Communications Minister Stephen Conroy told ABC Radio that voters needed time to understand the details of the scheme.

“Tony Abbott has had a free kick for a few months," he said, adding the government was taking a painful short-term political hit.

Senator Conroy cited backing for a flood levy as evidence the government could turn around voter support.

“In the early stages of debate it was polling badly, but the government showed determination, passed it through the parliament and now you don’t hear a thing about it," he said.

Mr Conroy took a swipe at the way News Ltd papers were covering the issue, singling out Sydney’s Daily Telegraph for special mention.

“The Daily Telegraph is the worst of the examples at the moment," he said. “It’s interested in distorting the debate."

Climate Change Minister Greg Combet defended the government’s “relatively small" $12 million television ad campaign to sell the carbon tax but said he expected a tough road ahead.